Bitwise CIO Says Crypto Will Advance Even if CLARITY Act Misses Senate Deadline

Highlights:

• Matt Hougan says crypto can keep growing even if the CLARITY Act misses the August Senate deadline.
• Hougan warns the delay may keep institutional investors cautious while lawmakers consider action later this year.
• He expects SEC rules and Wall Street adoption to support crypto despite continued uncertainty in Congress.

Bitwise Chief Investment Officer Matt Hougan believes the cryptocurrency industry will continue to grow even if the CLARITY Act fails to secure a Senate vote before the August recess. In an August 4 memo, Hougan said the bill’s failure would create more regulatory uncertainty. However, it would not stop crypto adoption or the shift toward blockchain-based finance.

The Senate is scheduled to leave for its August recess on Friday, August 7, and return on September 14. Hougan said Senate leaders needed to file cloture by Wednesday, August 5, to preserve a realistic path to a vote before the recess. Cloture is a Senate procedure used to limit debate and move legislation toward a vote.

JUST IN: Bitwise CIO says the crypto industry will keep moving whether CLARITY passes this week or not, as SEC rulemaking could fill gaps—though future administrations could shift policy. $BTC $ETH pic.twitter.com/oxt68WbH5l

— Bpay News (@bpaynews) August 5, 2026

However, crypto journalist Eleanor Terrett reported on August 5 that Senate Majority Leader John Thune had not filed cloture on the motion to proceed with the CLARITY Act. She linked the delay to procedural matters involving an ongoing continuing resolution, or CR.

CLARITY Act Delay Could Keep Investors on the Sidelines

Hougan argued that missing the August deadline would not formally kill the bill. Instead, he said it could enter a “walking dead” stage, with lawmakers continuing to discuss possible action in September or during a year-end legislative session.

The delay could still affect crypto market sentiment. According to Hougan, some professional investors are staying away from digital assets because they want a clear outcome from Congress. Continued uncertainty could therefore limit new institutional investment in the short term.

Prediction-market traders have also lowered their expectations. Hougan noted that Polymarket placed the chance of the CLARITY Act passing in 2026 at 27%, down from 82% in February. He said a decisive decline in those odds could help the market move beyond the uncertainty, even if crypto prices react negatively at first.

SEC Rules Could Support Crypto Without Congress

Despite the legislative risk, Hougan expects regulators and financial companies to continue advancing crypto adoption. He pointed to recent comments from SEC Chair Paul Atkins, who said the agency was “ready, willing, and able” to introduce rules covering many of the same issues addressed by the CLARITY Act.

SEC-led rules could arrive faster and may support innovation in the near term. However, Hougan warned that agency rules would be less permanent than legislation. A future administration could appoint new SEC leadership and reverse the regulatory approach.

Wall Street Keeps Moving Into Crypto Despite Regulatory Delays

Hougan also highlighted growing blockchain activity among major financial companies. BlackRock operates a spot Bitcoin exchange-traded fund, while Nasdaq and JPMorgan are expanding their work on tokenized assets. Visa, Mastercard and Stripe are also working with Coinbase on stablecoin payment services.

Meanwhile, the Office of the Comptroller of the Currency has granted trust charters to crypto companies, including Circle, Ripple and Paxos. Hougan believes these developments show that traditional financial markets are already moving onchain.

Therefore, passage of the CLARITY Act remains the preferred outcome because it could provide stronger investor protections and more lasting regulatory rules. Still, Hougan’s main view is that the crypto industry’s long-term growth does not depend on one Senate deadline.